Struggling To Find Poise In Risk-On Trade

Wednesday's Tokyo trades saw USD/JPY pull back after a rejection of resistance from Jan 28 high of Y115.68, but the rate clawed back losses through the rest of the day. Global equity markets remained buoyant, with positive risk sentiment reducing demand for safe haven currencies.

• BoJ board member Nakamura told reporters that it would be wrong for Japan's central bank to raise interest rates before there are signs of robust wage growth. Therefore, policymakers "will continue with monetary easing persistently" for the time being.
• Japan's factory gate inflation unexpectedly accelerated to +8.6% Y/Y in January from +8.5% recorded in December. On a monthly basis, PPI grew 0.6% M/M in the wake of a 0.2% decline in the prior month. Both readings topped consensus estimates.
• USD/JPY operates +6 pips at Y115.57 as we type. Initial bullish focus falls on the 76.4% retracement of the Jan 4 - 24 downleg/Jan 28 & Feb 9 highs at Y115.67/68. A break here would open up Jan 4 high of Y116.35. Meanwhile, a fall through Feb 2 low of Y114.16 would expose Y113.47, which represents key support from Jan 24 low.